Future of the US Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2019
The Future of the US Defense Industry - Market Attractiveness, Competitive Landscape
and Forecasts to 2018 offers the reader an insight into the market opportunities and entry
strategies adopted by foreign original equipment manufacturers (OEMs) to gain market
share in the US defense industry.
This report is the result of extensive market and company research covering the US
defense industry, and provides detailed analysis of both historic and forecast defense
industry values including key growth stimulators, analysis of the leading companies in the
industry, and key news.
The US has a defense budget of US$607.5 billion (including allocation for OCO) in 2014
and the government is expected to sustain a high level of expenditure over the forecast
period. Although the allocation for overseas operations is estimated to remain stable at
US$37.3 billion over the forecast period, the country is expected to increase its base
military expenditure at a CAGR of 1.75%. The expenditure will be triggered by the
government's plan to acquire advanced defense equipment coupled with replacement of
old and obsolete arms and ammunitions.
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Future of the US Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2019
Key Highlights
The US is currently the leading military superpower in the world and has undertaken welldefined measures towards investing in the defense sector to reinforce its position as the
most militarily powerful nation in the world. With this objective, the US is embarking
upon a nuclear defense modernization plan and missile defense program that is expected
to drive defense expenditure. Additionally, the government is working on enhancing its
command, control, computers, communications, and intelligence systems to increase
inter-operability between various branches of the armed forces. The other major military
powers in the world - China and Russia - have consistently increased their defense
expenditures significantly over the last couple of years. These countries have also taken
steps to upgrade their military hardware and facilities.
While China is developing a new-generation intercontinental ballistic missile (ICBM)
capable of destroying targets all across the world, Russia is also developing a heavy-liquidfuel, non-nuclear, precision-guided payload capability for a new class of ICBMs, which
would give Russia near-global coverage. Despite these measures adopted by China and
Russia, the US remains determined to retain its military supremacy.
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Future of the US Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2019
Major points from Table of Contents:
Table 1: US Defense Expenditure (US$ Billion), 2010-2014
Table 2: US Defense Expenditure (US$ Billion), 2015-2019
Table 3: US GDP Growth vs. Defense Expenditure Growth vs. Defense Expenditure as
Percentage of GDP, 2010-2014
Table 4: US GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as
Percentage of GDP Growth, 2015-2019
Table 5: US Per Capita Defense Expenditure, 2010-2014
Table 6: US Per Capita Defense Expenditure, 2015-2019
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